The round is led by two former FedEx and DHL Executives; NC Capital and Millennium Group’s private equity fund also participated
Tel Aviv, Aug. 22, 2022 – Deliverider, the smart middle-mile logistics solution for e-grocery, announced $2M in a seed round funding led by two former FedEx and DHL executives, Millennium Group’s private equity fund and NC Capital. The seed round aims to allow further product development and hiring.
The funding will also spur faster adoption of the platform amongst large e-commerce retailers looking to extend their catalog offering, boost online profits, and increase overall basket size by allowing non-inventory items to ride in the same basket as in-stock items at no additional cost.
Fast last mile delivery is essential for retailers to win and retain customers, yet it often leads to significant losses on every order. Deliverider’s unique solution is an efficient algorithm-driven middle-mile platform that streamlines the outbound logistics process to enable goods with as little as a $5 price tag to be sold online profitably. The solution enables retailers to grow their average basket size by 5-10%, improving customer satisfaction and increasing bottom-line earnings, without adding overhead costs. This solution means that retailers can expand their catalog with thousands of low-cost items from stores located near the grocer without having to hold them in stock and at no added delivery fee for the customer.
With Deliverider’s tried and tested technology-enabled streamlined solution, retailers can finally compete with the likes of Amazon and Walmart. Deliverider’s solution allows online retailers to improve their average cart size, make delivery profitable, and regain their customer relationships. Utilizing the Deliverider platform provides access to data insights and cross-sell and upsell opportunities which are impossible with third-party platforms. Deliverider’s services also mark an important improvement for more sustainable fulfillment by focusing their solution on efficient consolidation of multiple orders in one delivery. Currently, the platform is being utilized by Israel’s leading grocery provider Shufersal, along with a consortium of 20 plus brands, including ToysRUs, with plans to expand to the US market within the next quarter.
“As founders who came from the e-grocery industry, we learned that expanding inventory with third party, low-cost, non-food items result in the highest conversion rates as add-on items to an existing basket,” said Deliverider Co-Founder and CEO Ido Raz.“ Unlike costly options, such as drop-shipping marketplaces or quick-commerce offerings, our solution enables retailers to unlock the untapped sales potential of those low-cost items for the very first time in a sustainable way while ensuring retailers can safeguard their most important asset, their customers. This funding is a big vote of confidence in that vision.”
“Deliverider’s first-of-a-kind platform is built to completely address the established and emerging problems in the delivery and retail industries,” said investor Yoav Horovitz of NC Capital. “It’s a game changer for efficient delivery, and the turning point from VC subsidized fulfillment to profitability.”
About Deliverider:
Deliverider provides a technology-enabled, middle-mile logistics solution for online retailers including e-grocery. The platform allows ecommerce companies to offer low-cost-non-inventory products alongside their in-stock selection and fulfill it in the same basket, without the need for costly stocking of third-party inventory or multiple last-mile shipments. The solution allows for larger baskets, increased profitability, safeguarding of customer data, a reduced carbon footprint and happier customers.
To learn more about Deliverider, visit https://www.deliverider.com/.